Just-in-time (JIT) is a management philosophy that uses a pull-based system to eliminate waste and reduce inventory costs: 

• Pull-based system

  In a pull system, production is triggered by customer demand, rather than forecasts. This ensures that inventory is only replenished when needed, reducing the risk of overstocking. 

• Demand-pull

  JIT operates on the rule that work should flow to a work center only if that work center needs more work. 

• Flexibility

  JIT models are flexible and can quickly respond to changing market needs. For example, a manufacturer can increase production for in-demand products and reduce production for slow-moving items. 

JIT is attributed to Toyota Motor Corporation, a Japanese automaker. In the 1970s, Toyota executives reasoned that the company could adapt more quickly and efficiently to changes in trends or demands if it did not keep any more inventory in-store than was immediately needed. 

JIT can help companies: Reduce waste, Improve the quality of their products and processes, Increase levels of productivity, and Optimize expenses. 

Toyota Production System

Toyota Production System

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